Union Budget 2024: Sitharaman introduces 3 incentives for first timers, employers, job creation | Details

FM Nirmala Sitharaman introduced in the Union Budget 2024 employment-linked incentives for first timers, employer support and job creation in manufacturing

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-2025 in Parliament on Tuesday and introduced three employment schemes centred around first timers, support for employers and job creation in manufacturing.

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Lok Sabha, introducing 3 employment incentives for first timers, job creation and employer benefits as well (PTI Photo)(PTI07_23_2024_000104A)(PTI)

The Finance Minister listed 9 major priorities of the budget, the second of which was employment and skilling. The minister then outlined 3 major employment-linked incentives under the Prime Minister's package.

She stated that, “These schemes will be based on enrollment in the EPFO [Employees' Provident Fund Organisation] and focus on first time employees and employers.”

Scheme A:

This scheme aimed at first timers will provide one month wage to all persons newly entering the work force in all formal sectors. There will be a direct benefit transfer of the first month's salary in 3 installments to all first time employees, up to Rs.15,000.

This scheme is for those registered under the EPFO and employees can expect up to Rs. 1 lakh as a salary per month.

Sitharaman stated that the scheme is expected to benefit upto 10 lakh youth.

Scheme B:

This scheme revolves around additional job creation in the manufacturing sector, through incentivising them to hire first time employees.

Incentives will be provided at a specified scale to both employees and employers based on their EPFO contribution, in the first four years of employment.

The FM stated that the scheme is expected to benefit 30 lakh first time employees and their employers as well.

Scheme C:

This scheme will focus on support for employers, covering additional employment across sectors. All additional employment up to a salary of Rs.1 lakh per month will be considered.

The government will reimburse to employers up to Rs. 3000 per month for two years towards their EPFO contribution for every additional employee they have.

According to Sitharaman, this scheme is supposed to incentivise the additional employment of 50 lakh people.

Beyond the three employment-linked schemes, the Finance Minister also mentioned the importance of inclusion of women in the workforce and skilling 20 lakh youth through a centrally sponsored scheme.